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JetBlue Turns A Profit, Beats Expectations!  
User currently offlineSHUPirate1 From United States of America, joined Sep 2003, 3670 posts, RR: 16
Posted (9 years 10 months 4 days 2 hours ago) and read 3496 times:

http://investor.jetblue.com/ireye/ir_site.zhtml?ticker=JBLU&script=410&layout=-6&item_id=667244


Burma's constitutional referendum options: A. Yes, B. Go to Insein Prison!
32 replies: All unread, showing first 25:
 
User currently offlineA350 From Germany, joined Nov 2004, 1101 posts, RR: 22
Reply 1, posted (9 years 10 months 4 days 1 hour ago) and read 3456 times:

It's amazing - Southwest and JetBlue are making money. We can conclude that the state of the industry is not as bad as many people think. What is bad, however, is the legacies' ability to adapt to the markets' demand.

A350



Photography - the art of observing, not the art of arranging
User currently offlineJGPH1A From , joined Dec 1969, posts, RR:
Reply 2, posted (9 years 10 months 4 days 1 hour ago) and read 3446 times:

No doubt the nay-sayers will be on here any minute pointing out that

a) Airbus gave them all those planes for free
b) In 2 years those planes will be falling apart and will cost a fortune to maintain
c) In 2 years all the new hires at B6 will be demanding higher pay and B6 will go bankrupt as a result.


User currently offlineSHUPirate1 From United States of America, joined Sep 2003, 3670 posts, RR: 16
Reply 3, posted (9 years 10 months 4 days 1 hour ago) and read 3444 times:

A350-I think you missed somebody...airTran also turned a profit...


Burma's constitutional referendum options: A. Yes, B. Go to Insein Prison!
User currently offlineJBLUA320 From United States of America, joined May 2002, 3179 posts, RR: 19
Reply 4, posted (9 years 10 months 4 days 1 hour ago) and read 3412 times:
Support Airliners.net - become a First Class Member!

Not a huge sum, but in this industry, a penny is gold. Nice to see them turn a profit and continue to expand.

Should do some good for their stock-- it needs it!

JBLU


User currently offlineFA4B6 From , joined Dec 1969, posts, RR:
Reply 5, posted (9 years 10 months 3 days 23 hours ago) and read 3312 times:

No doubt the nay-sayers will be on here any minute pointing out that

a) Airbus gave them all those planes for free
b) In 2 years those planes will be falling apart and will cost a fortune to maintain
c) In 2 years all the new hires at B6 will be demanding higher pay and B6 will go bankrupt as a result.





LOL ... exactly! astounding news for B6, glad to add another quarter of profitability. Hopefully things will do much better in Q1 '05. Cant wait to see what service is added/taken away.



User currently offlineEA CO AS From United States of America, joined Nov 2001, 13704 posts, RR: 61
Reply 6, posted (9 years 10 months 3 days 22 hours ago) and read 3222 times:
Support Airliners.net - become a First Class Member!

In 2 years those planes will be falling apart and will cost a fortune to maintain

Falling apart? No. A fortune, no. Costing MORE to maintain, though? Absolutely.

Anyone who says otherwise is lying or selling something.


In 2 years all the new hires at B6 will be demanding higher pay

It's likely that B6 employees will, over time, ask for higher pay if the company continues to succeed in the coming years. That's an absolute truth.



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlineRDUDDJI From Lesotho, joined Jun 2004, 1532 posts, RR: 3
Reply 7, posted (9 years 10 months 3 days 22 hours ago) and read 3211 times:

I've always been a huge fan of B6's buisness model. B6 just does smart things. CEO Neeleman knows what he is doing.

From RES agts working at home, high aircraft utilization, low distribution costs (I don't think they are part of the GDS), all A320's equipped with rafts for overwater ops, paperless cockpit, IFE in every seat (they were one of the first, then they purchased the whole LiveTV system), to the JFK hub (avoiding the congestion of other NY Metro airports), they just make good decisions.

Unlike the majors, they don't waste money flying unprofitable routes (see the ATL situation). I hear they even have their own standard routes issued by ATC for the NY-FL flights.

Any U.S. airline that is making money in the current revenue enviornment is doing something right. The only negatives I really saw in their earnings report was that their yield was down 7.1% and their operating costs were up 41%. The lower yield has alot to do with the competition that has increased in the NY-FL and tras-cons markets. The rise in operating costs was somewhat expected with the cost of fuel and their continued expansion.

I haven't had to opportunity to fly on them yet, but I look forward to doing so.

[Edited 2005-01-27 17:02:53]


Sometimes we don't realize the good times when we're in them
User currently offlineJetbluefan1 From United States of America, joined Dec 2003, 3012 posts, RR: 14
Reply 8, posted (9 years 10 months 3 days 22 hours ago) and read 3163 times:

Just listened to the online webcast and must say that I'm very pleased...they were supposedly going to report a -1/+1 operating margin, but instead it's an unbelievable 3.7%!

This past Q4 had a lot of things going against them - rising fuel costs, additional capacity, hurricane hangover, etc.

JetBlue was built for the bad times. This proves it.

JetBluefan1



Most people on a.net hate JetBlue. Get used to it.
User currently offlineHawk44 From United States of America, joined Jan 2005, 759 posts, RR: 3
Reply 9, posted (9 years 10 months 3 days 21 hours ago) and read 3134 times:

I'm not surprised at their earnings, they are making good choices all around and they offer something that WN doesn't have Direct TV. I plan on using B6 this spring for the first time and I can't wait.


Never under estimate the power of US
User currently offlineFA4B6 From , joined Dec 1969, posts, RR:
Reply 10, posted (9 years 10 months 3 days 21 hours ago) and read 3087 times:

It's likely that B6 employees will, over time, ask for higher pay if the company continues to succeed in the coming years. That's an absolute truth.


Flight Attendants as of now get an automatic 4.9%-9% raise every year (the % changes based on years of service). Thats pretty significant whereas my last company you practically had to beg for 5% and even then it was unrealistic. Average raise at that company (which is a hugely profitable Fortune 500) was 3%.

At B6 we get compensated really well and I dont think that the wage issue will be an issue for a very, very long time.


User currently offlineB6FA4ever From United States of America, joined Aug 2003, 818 posts, RR: 11
Reply 11, posted (9 years 10 months 3 days 21 hours ago) and read 3067 times:

all i can say is that i'm pretty impressed! i was actually expecting a small bit of a loss dues to all the drama airlines faced in the last quarter w/ the same issues (fuel, yields, huricane hangover...love that phrase JetBlueFan1).

just shows of a strong performance we did for '04! and FA4B6 is right. we are compinsated well. and i too believe there wouldn't be a wage issue for a long time.

here's to a strong '05 for us as well as to all other carriers!

~B6FA4ever


User currently offlineJacobin777 From United States of America, joined Sep 2004, 14968 posts, RR: 59
Reply 12, posted (9 years 10 months 3 days 20 hours ago) and read 2979 times:

I applaud them for making money where as most are losing big bux, but their operating expenses SOARED by a total of 41%!!! They are expanding rapidly, adding different planes to their fleet......while B6 is doing very well, they are still a young company compared to say.....WN.......lets see how they do in a few more years.........

WN has proved the test of time.........but I do think JBLU will do ok in the long run..they have adapted and adopted modern-day technology very well, and it does seem if JBLU has a loyal following ....which as we know is important to success (along with cheap fares..).....its the "Salaries, wages and benefits" part which concerns me the most..

good luck JBLU!!.....I will try them soon sometime.



"Up the Irons!"
User currently offlinePhxinterrupted From United States of America, joined Apr 2002, 474 posts, RR: 0
Reply 13, posted (9 years 10 months 3 days 19 hours ago) and read 2945 times:

Alaska Airlines may very well post a profit for 2004 as well.


Keepin' it real.
User currently offlineRichierich From United States of America, joined Nov 2000, 4289 posts, RR: 6
Reply 14, posted (9 years 10 months 3 days 19 hours ago) and read 2924 times:

It's likely that B6 employees will, over time, ask for higher pay if the company continues to succeed in the coming years. That's an absolute truth.

I think it is a fair statement but doesn't tell the whole story. JetBlue is also growing and will add new aircraft and undoubtedly new airports in 2005. You really need to also look at employees per aircraft - any increases current employees get should be more than offset by the next new aircraft going into service.

I think the main reason operating costs went up was nothing at all to do with employees receiving more money. It was FUEL! I'd like to see any other airline that could sustain a 41% increase in fixed costs and still eek out a profit!



None shall pass!!!!
User currently offlineJetBlueAtJFK From United States of America, joined Jan 2005, 1687 posts, RR: 3
Reply 15, posted (9 years 10 months 3 days 17 hours ago) and read 2814 times:

As JBLUA320 said, I hope they do because I have 5 shares of B6 soo... And Q4 was really good. Compared to everything I did not think it would be that great. Good Job!

jetBlueAtJFK



When You Know jetBlue, You Know Better
User currently offlineGoingboeing From United States of America, joined Dec 1999, 4875 posts, RR: 16
Reply 16, posted (9 years 10 months 3 days 17 hours ago) and read 2799 times:

No doubt the nay-sayers will be on here any minute pointing out that

a) Airbus gave them all those planes for free
b) In 2 years those planes will be falling apart and will cost a fortune to maintain
c) In 2 years all the new hires at B6 will be demanding higher pay and B6 will go bankrupt as a result.


Nope...this naysayer will only say that they haven't started flying the 190's yet....a step that management has even said will increase costs nearly 15%. It doesn't surprise me that they turned a profit this quarter....they appear to be a very well run airline. But I do question some of their future moves.


User currently offlineStlgph From United States of America, joined Oct 2004, 9497 posts, RR: 26
Reply 17, posted (9 years 10 months 3 days 16 hours ago) and read 2766 times:

Question...

Since I've only been here for a few months, what's this about free planes for JetBlue?

Do tell!




if assumptions could fly, airliners.net would be the world's busiest airport
User currently offlineGoingboeing From United States of America, joined Dec 1999, 4875 posts, RR: 16
Reply 18, posted (9 years 10 months 3 days 16 hours ago) and read 2722 times:

JetBlue got a very sweet deal on their initial aircraft. Many say that they got them for "free", but that's not the case. But the lease payments are considerably less than what they "usually" are.

User currently offlinePPVRA From Brazil, joined Nov 2004, 8971 posts, RR: 39
Reply 19, posted (9 years 10 months 3 days 15 hours ago) and read 2694 times:

Nice to see them doing well!

Some what off-topic question:

Any chance of B6 going long haul? I understand they are an LCC, but I believe they can be quite succesful in doing so. Maybe with 7e7s? Would be an amazing fleet: E190s, A320s, and 7e7s.

Any thoughts?

Sorry about the off-topic question guys...

Cheers,

PPVRA



"If goods do not cross borders, soldiers will" - Frederic Bastiat
User currently offlineStlgph From United States of America, joined Oct 2004, 9497 posts, RR: 26
Reply 20, posted (9 years 10 months 3 days 15 hours ago) and read 2681 times:

Goingboeing--

Kind've like a "fly us exclusively for life" deal?




if assumptions could fly, airliners.net would be the world's busiest airport
User currently offlineGoingboeing From United States of America, joined Dec 1999, 4875 posts, RR: 16
Reply 21, posted (9 years 10 months 3 days 15 hours ago) and read 2680 times:

Do you mean International? New York to LA is about as long haul as a domestic carrier can get. And I doubt they'll go international, at least not to Europe or South America.

User currently offlinePPVRA From Brazil, joined Nov 2004, 8971 posts, RR: 39
Reply 22, posted (9 years 10 months 3 days 15 hours ago) and read 2659 times:

Yes, I meant international, sorry. More precisely Europe.

They can offer pretty competitive prices, and with the 7e7 would be even easier/more profitable.

Cheers,

PPVRA

[Edited 2005-01-27 23:57:59]


"If goods do not cross borders, soldiers will" - Frederic Bastiat
User currently offlineMAH4546 From Sweden, joined Jan 2001, 33194 posts, RR: 71
Reply 23, posted (9 years 10 months 3 days 15 hours ago) and read 2653 times:

Do you mean International? New York to LA is about as long haul as a domestic carrier can get.

Miami-Seattle is longer. So is Newark-Honolulu.



a.
User currently offline174thfwff From , joined Dec 1969, posts, RR:
Reply 24, posted (9 years 10 months 3 days 15 hours ago) and read 2621 times:

Tell me if I'm wrong, but B6 does not have a unionized staff...this does wonders for the company as I feel they almost have a take it or leave it policy. It is working great for them. Further the few flights that I have been on B6 their staff really likes working for them. Unions are almost a double edged sword in any industry,as sometimes they demand more then their companies can actually afford to give.

Also since they are such a young company, again tell me if I'm wrong, but their pay scale isn't outrageous. This really helps a lot as well.

All this could change in the future, but for now let them work their magic.


25 Post contains images CRPilot : I gotta say, B6 and WN are definitely the future of domestic aviation. I am so impress at how they continue to prove the success in their formula. Bot
26 Flybyguy : They can offer pretty competitive prices, and with the 7e7 would be even easier/more profitable. For one thing Boeing despises new LCCs, they'll never
27 Padcrasher : Hate to be the bearer of bad news but we're all adults here right? Jetblue made 13.1 million this Quarter off fuel hedges. Some 2 or 3 million off of
28 PVG : Can someone clarify what was the original deal between JB & Airbus. Did they get the planes for 2 years for very low or no payments? Is this true or j
29 Padcrasher : The received maintenance warranties, where Airbus picked up the cost of some heavy maintenance costs during the first years of the aircraft. Jetblue e
30 Notbluejet : Padcrasher. Why would this be a hard topic to talk about??If I knew details myself I would gladly share them. Do you realize this is a normal part of
31 Lightsaber : Padcrasher I don't dispute your numbers but would instead add a few factors that will raise DL costs versus B6 in the next few years. Please don't tak
32 Post contains images Glideslope : Let's not forget that Neeleman approached Boeing in the initial phases. Boeing had as much of an opportunity to make it work as Airbus. As much as I'
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